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Abstract:

An individual consumer borrower accessing a person-to-person lending
website is provided an opportunity to have a loan request wholly or
partially satisfied by a financial institution at loan terms from the
financial institution. The financial institution, for example, can
receive information about a person-to-person loan request, determine
whether to authorize a financial institutional loan, offer a loan to the
individual on terms determined by the financial institution, and issue
the loan to an individual consumer borrower responsive to approval of the
terms. Prior to an auction, the individual consumer can choose an
immediate loan offer having financial institution terms or choose to
solicit individual consumer loan offers with more favorable terms through
the person-to-person lending website. The financial institution can also
offer a gap filling loan for a deficiency amount so that the loan request
can be partially satisfied by individual consumer loan offers.

Claims:

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20. (canceled)

21. A system to finance an individual consumer loan request associated
with a person-to-person lending website, the system comprising: a first
computer associated with a financial institution defining a financial
institution computer, the financial institution computer having memory,
being associated with the electronic communications network, and being
positioned to receive and process loan request information from a second
computer associated with an electronic forum for person-to-person loans
defining a person-to-person lending website computer, the
person-to-person lending website computer in communication with a third
computer associated with an individual consumer defining a borrower
computer and one or more fourth computers associated with individual
lenders defining a lender computer, the borrower computer being
positioned to provide information for a person-to-person loan request
through an electronic communications network, the lender computer
positioned to communicate to the person-to-person lending website
computer a loan offer responsive to the person-to-person loan request;
and a computer program product associated with the financial institution
computer, stored on a tangible, non-transitory computer memory media,
operable on a computer, and used to finance an individual consumer loan
request associated with a person-to-person lending website, the computer
program product comprising a set of instructions that, when executed by
the computer, cause the computer to perform the operations of: receiving
information about a person-to-person loan request associated with an
electronic forum for person-to-person loans from the person-to-person
lending website computer, the loan request from an individual consumer
and having a preselected loan value, determining whether to authorize a
financial institutional loan from a financial institution to the
individual consumer requesting the loan responsive to information in the
person-to-person loan request, offering to the individual consumer
requesting the loan the financial institutional loan, the loan offer
having loan terms determined by the financial institution responsive to
the information in the person-to-person loan request, and issuing the
financial institutional loan to the individual consumer making the
person-to-person loan request responsive to approval by the individual
consumer of the terms from the financial, institution so that the
person-to-person loan request is converted into proceeds from a financial
institution loan.

22. A system of claim 21, wherein the operation of offering to the
individual consumer requesting the loan the financial institutional loan
includes offering a loan having the preselected loan value to the
consumer prior to the loan request being posted on the person-to-person
lending website so that the individual consumer requesting the loan can
choose an immediate loan offer with terms determined by the financial
institution or choose to solicit individual consumer loan offers with
more favorable terms through the person-to-person lending website.

23. A system of claim 21, wherein the operation of offering to the
individual consumer requesting the loan the financial institutional loan
includes: identifying a deficiency amount for the person-to-person loan
request associated with the person-to-person lending website, the
deficiency amount being the difference between the preselected loan value
of the person-to-person loan request and a value of an aggregate of any
individual consumer loan offers responsive to the person-to-person loan
request and associated with the person-to-person lending website, the
value of the aggregate being less than the preselected loan value; and
offering to the individual consumer requesting the loan a gap filling
loan from a financial institution for the deficiency amount from a
financial institution the loan offer having loan terms determined by the
financial institution responsive to the information in the
person-to-person loan request so that the loan request can be partially
satisfied by individual consumer loan offers.

24. A system of claim 21, wherein the computer program product further
comprises a set of instructions that, when executed by the computer,
cause the computer to perform the operations of: determining whether to
authorize one or more insurance products from the financial institution
to individual consumers associated with the person-to-person loan
request; offering for purchase one or more insurance products to the
individual consumers associated with the person-to-person loan request,
the insurance products including one or more of the following: debt
cancellation insurance, and credit life insurance; and issuing one or
more insurance products responsive to one or more purchases by the
individual consumers associated with the person-to-person loan request
and responsive to a closing of the loan.

25. A. system of claim 21, wherein the operation of issuing the financial
institutional loan to the individual consumer making the person-to-person
loan request includes loading the loan value to a prepaid card to thereby
convert the loan request into a prepaid card having an associated value
and being capable of purchasing goods.

26. A system of claim 21, wherein the person-to-person lending website
solicits person-to-person loan requests having a maximum interest rate
and responsively solicits loan offers having an interest rate, the loan
offer interest rate being less than or equal to the loan request maximum
interest rate so that individual consumers can compete to fulfill the
person-to-person loan request; wherein determining whether to authorize a
financial institutional loan from a financial institution to the
individual consumer requesting the loan responsive to information in the
person-to-person loan request includes one or more preselected
authorization parameters being related to a loan underwriting model; and
wherein the financial institution is a federally-chartered bank subject
to federal banking laws and regulations and not subject to state banking
laws and regulations.

27. A computer program product associated with a financial institution
computer, stored on a tangible, non-transitory computer memory media,
operable on the financial institution computer, and used to perform a
process of offering, by a financial institution associated with the
financial institution computer, a financial institution loan to an
individual consumer making an individual consumer loan request using a
borrower computer in electronic communication with an electronic forum
for person-to-person loans operated by a person-to-person lending website
computer and a process of financing the individual consumer loan request,
the computer program product, comprising a set of instructions that, when
executed by the computer, cause the computer to perform the operations
of: receiving, from the person-to-person lending computer, information
about a person-to-person loan request associated with the electronic
forum for person-to-person loans, the loan request from an individual
consumer to solicit a plurality of lenders for the person-to-person
loans, and having a preselected loan value; determining whether to
authorize the financial institutional loan from the financial institution
to the individual consumer requesting the person-to-person loan
responsive to information in the person-to-person loan request; offering
to the individual consumer requesting the person-to-person loan the
financial institutional loan, the financial institution loan offer having
loan terms determined by the financial institution responsive to the
information in the person-to-person loan request; and issuing the
financial institutional loan to the individual consumer making the
person-to-person loan request responsive to approval by the individual
consumer of the terms from the financial institution so that the
person-to-person loan request is converted into proceeds from a financial
institution loan.

28. A computer program product of claim 27, wherein the operation of
offering to the individual consumer requesting the loan the financial
institutional loan includes offering a loan having the preselected loan
value to the consumer prior to the loan request being posted on the
person-to-person lending website so that the individual consumer
requesting the loan can choose an immediate loan offer with terms
determined by the financial institution or choose to solicit individual
consumer loan offers with more favorable terms through the
person-to-person lending website.

29. A computer program product of claim 27, wherein the operation of
offering to the individual consumer requesting the loan, the financial
institutional loan includes: identifying a deficiency amount for the
person-to-person loan request associated with the person-to-person
lending website, the deficiency amount being the difference between the
preselected loan value of the person-to-person loan request and a value
of an aggregate of any individual consumer loan offers responsive to the
person-to-person loan request and associated with the person-to-person
lending website, the value of the aggregate being less than the
preselected loan value; and offering to the individual consumer
requesting the loan a gap filling loan from a financial institution for
the deficiency amount from a financial institution, the loan offer having
loan terms determined by the financial institution responsive to the
information in the person-to-person loan request so that the loan request
can be partially satisfied by individual consumer loan offers.

30. A computer program product of claim 27, further comprising a set of
instructions that, when executed by the computer, cause the computer to
perform the operations of: determining whether to authorize one or more
insurance products from the financial institution to individual consumers
associated with the person-to-person loan request; offering for purchase
one or more insurance products to the individual consumers associated
with the person-to-person loan request, the insurance products including
one or more of the following: debt cancellation insurance, and credit
life insurance; and issuing the one or more insurance products responsive
to one or more purchases by the individual consumers associated with the
person-to-person loan request and responsive to a closing of the loan.

31. A computer program product of claim 27, wherein the operation of
issuing the financial institutional loan to the individual consumer
making the person-to-person loan request includes loading the loan value
to a prepaid card to thereby convert the loan request into a prepaid card
having an associated value and being capable of purchasing goods.

32. A computer program product of claim 27, wherein the person-to-person
lending website solicits person-to-person loan requests having a maximum
interest rate and responsively solicits loan offers having an interest
rate, the loan offer interest rate being less than or equal to the loan
request maximum interest rate so that individual consumers can compete to
fulfill the person-to-person loan request; wherein determining whether to
authorize a financial institutional loan from a financial institution to
the individual consumer requesting the loan responsive to information in
the person-to-person loan request includes one or more preselected
authorization parameters being related to a loan underwriting model; and
wherein the financial institution is a federally-chartered bank subject
to federal banking laws and regulations and not subject to state banking
laws and regulations.

33. A computer-implemented method of satisfying a person-to-person loan
request, the computer-implemented method operable on a computer defining
a financial institution computer associated with a financial institution
and being used to perform a process of offering, by the financial
institution associated with the financial institution computer, a
financial institution loan to an individual consumer making an individual
consumer loan request using a borrower computer in electronic
communication with an electronic forum for person-to-person loans
operated by a person-to-person lending website computer and a process of
financing the individual consumer loan request, the computer-implemented
method performing the steps of: receiving, from the person-to-person
lending computer, information about a person-to-person loan request
associated with the electronic forum for person-to-person loans, the loan
request from an individual consumer to solicit a. plurality of lenders
for the person-to-person loans, and having a preselected loan value;
determining whether to authorize the financial institutional loan from
the financial institution to the individual consumer requesting the
person-to-person loan responsive to information in the person-to-person
loan request; offering to the individual consumer requesting the
person-to-person loan the financial institutional loan, the financial
institution loan offer having loan terms determined by the financial
institution responsive to the information in the person-to-person loan
request; and issuing the financial institutional loan to the individual
consumer making the person-to-person loan request responsive to approval
by the individual consumer of the terms from the financial institution so
that the person-to-person loan request is converted into proceeds from a
financial institution loan.

34. A computer-implemented method of claim 33, wherein the step of
offering to the individual consumer requesting the loan the financial
institutional loan by the financial institution computer includes
offering a loan having the preselected loan value to the consumer prior
to the loan request being posted on the person-to-person lending website
so that the individual consumer requesting the loan can choose an
immediate loan offer with terms determined by the financial institution
or choose to solicit individual consumer loan offers with more favorable
terms through the person-to-person lending website.

35. A computer-implemented method of claim 33, wherein the step of
offering to the individual consumer requesting the loan the financial
institutional loan by the financial institution computer includes:
identifying a deficiency amount for the person-to-person loan request
associated with the person-to-person lending website, the deficiency
amount being the difference between the preselected loan value of the
person-to-person loan request and a value of an aggregate of any
individual consumer loan offers responsive to the person-to-person loan
request and associated with the person-to-person lending website, the
value of the aggregate being less than the preselected loan value; and
offering to the individual consumer requesting the loan a gap-filling
loan from a financial institution for the deficiency amount from a
financial institution, the loan offer having loan terms determined by the
financial institution responsive to the information in the
person-to-person loan request so that the loan request can be partially
satisfied by individual consumer loan offers.

36. A computer-implemented method of claim 33, further comprising:
determining whether to authorize one or more insurance products from the
financial institution to individual consumers associated with the
person-to-person loan request; offering for purchase one or more
insurance products to the individual consumers associated with the
person-to-person loan request, the insurance products including debt
cancellation insurance; and issuing the one or more insurance products
responsive to one or more purchases by the individual consumers
associated with the person-to-person loan request and responsive to a
closing of the loan.

37. A computer-implemented method of claim 33, further comprising:
determining whether to authorize one or more insurance products from the
financial institution to individual consumers associated with the
person-to-person loan request; offering for purchase one or more
insurance products to the individual consumers associated with the
person-to-person loan request, the insurance products including credit
life insurance; and issuing the one or more insurance products responsive
to one or more purchases by the individual consumers associated with the
person-to-person loan request and responsive to a closing of the loan.

38. A computer-implemented method of claim 33, wherein the step of
issuing the financial institutional loan to the individual consumer
making the person-to-person loan request includes loading the loan value
to a prepaid card to thereby convert the loan request into a prepaid card
having an associated value and being capable of purchasing goods.

39. A computer-implemented method of claim 18, further comprising a
reader reading data on the prepaid card to access the loan value on the
prepaid card to represent a visual depiction of the loan value on a
display associated with the reader and to complete a transaction of goods
to thereby convert the data on the prepaid card into goods.

40. A computer-implemented method of claim 33, wherein the
person-to-person lending website solicits person-to-person loan requests
having a maximum interest rate and responsively solicits loan offers
having an interest rate, the loan offer interest rate being less than or
equal to the loan request maximum interest rate so that individual
consumers can compete to fulfill the person-to-person loan request;
wherein determining whether to authorize a financial institutional loan
from a financial institution to the individual consumer requesting the
loan responsive to information in the person-to-person loan request
includes one or more preselected authorization parameters being related
to a loan underwriting model so that loan request data is converted into
loan offer data; and wherein the financial institution is a
federally-chartered bank subject to federal banking laws and regulations
and not subject to state banking laws and regulations.

Description:

BACKGROUND OF THE INVENTION

[0001] 1. Related Applications

[0002] This application claims priority to and the benefit of U.S.
Provisional Patent Application No. 61/033,069, titled "Person-to-Person
Lending Program Product, System, and Associated Methods", filed on Mar.
3, 2008, incorporated herein by reference in its entirety.

[0003] 2. Field of Invention

[0004] The present invention relates generally to the financial service
and lending industries, and, more particularly, to products, systems, and
associated methods to finance a gap filling loan for a deficiency amount
associated with a person-to-person loan request and to provide loans and
guarantees from a financial institution for loan requests associated with
a person-to-person lending.

[0005] 3. Description of the Related Art

[0006] Person-to-person lending, sometimes called P2P lending or
alternately peer-to-peer lending, involves individual consumers making
loans to other individual consumers. Increasingly prevalent,
person-to-person lending enjoys significant, favorable publicity and
positive feedback from United States bank regulators. Today, various
person-to-person or peer-to-peer ("P2P") lending websites have been
developed and launched to provide access to loans, typically unsecured
loans, to individual consumers.

[0007] A large number of borrowers, however, do not get their loan
requests fully funded. Borrower requests far exceed lender dollars
available. Because some P2P lending websites utilize group or affinity
relationships, such as relationships in Facebook or other social media
websites, borrowers with no group or affinity relationship can have
difficulty attracting individual lenders. Borrowers also can make poorly
thought-out or confusing loan requests, putting off individual consumer
lenders. In addition, mislabeled credit grades and overly-simplified
credit grading can result in borrowers not getting their loans fully
funded.

[0008] Perhaps negatively affecting the P2P lending marketplace, state
regulations in many states limit lending interest rates. Moreover, the
P2P lending market suffers from, in general, a lack of sophisticated
underwriting models to qualify borrowers and access to many secondary
capital markets.

[0009] It is known that millions of prepaid cards are issued each year in
the United States. It is also known that many of the customers of prepaid
cards rely primarily on cash and a prepaid card account for their
personal finances; these customers often do not have a traditional
checking, savings, or other bank deposit account, and they usually do not
write checks.

SUMMARY OF INVENTION

[0010] In view of the foregoing, Applicant has recognized one or more
source of many of these problems and provides enhanced embodiments of
computerized methods of financing an individual consumer loan request
associated with P2P lending, and associated systems and computer program
products. Embodiments of the present invention, for example, provide
financing for a deficiency amount for a P2P loan request, quickly
satisfying a P2P loan request, and guaranteeing a P2P loan.

[0011] According to embodiments of the present invention, when an
individual consumer borrower associated with a P2P lending website, or
other P2P communication network, does not have a loan request fully
funded for the preselected loan value by individual consumer lenders, for
example, a financial institution such as a bank can finance a gap filling
loan for the deficiency amount at preselected loan terms from the
financial institution. The financial institution identifies the
deficiency amount for a P2P loan request, determines whether to authorize
a financial institutional loan for the deficiency amount, authorizes a
gap filling loan at preselected loan teems from the financial
institution, and issues the loan to an individual consumer borrower
responsive to approval of the preselected terms. As understood by those
skilled in the art, the financial institution serves as stop-gap for loan
requests that are not fully funded but meet the financial institution's
credit strategy to thereby fulfill an uncommitted portion of the loan
requests. Some benefits include, for example, a significant increase in
loan closings because otherwise unsatisfied loan requests gain a second
opportunity to obtain needed funds. In addition, individual consumer
borrowers now have an option of a blended loan or interest rate,
according to embodiments of the present invention. For example, if a
borrower posts a request for $5,000 with a 10% maximum rate limitation
and lenders offer a total of $4,000 at the 10% interest rate, the
financial institution can offer to loan the remaining $1,000, the
deficiency amount, at a rate of 15%. The borrower can then choose to
accept a blended rate of 11% (being $4,000 at 10% and $1,000 at 15%), in
addition to the options of a $4,000 loan at 10%, or no loan at all.
Moreover, the involvement of the financial institution, for example, can
advantageously put competitive or timing pressures on individual consumer
lenders to thereby force greater competition among the lenders and add an
increase time component to bidding or offering P2P loans.

[0012] According to other embodiments of the present invention, a
financial institution can provide immediate financing terms responsive to
an individual consumer borrower loan request of a preselected loan value
associated with a P2P lending website so that the individual consumer can
choose the immediate loan offer with terms determined by the financial
institution or choose to solicit individual consumer loan offers with
more favorable terms through the P2P lending website. As understood by
those skilled in the arts, the immediate financing option provided by the
financial institution, for example, can guarantee that the loan will be
funded (assuming the borrower is willing to accept the terms of the
financial institution) and establishes a ceiling on the "zone of possible
agreement." For example, if a borrower posts a request for $5,000 with a
10% maximum rate limitation, the financial institution can offer
immediate financing at a rate of 15%. The borrower can then choose to
accept the rate of 15% immediately, if timing is critical, or choose to
wait for individual consumer loan offers with a more favorable rate, if
timing is less critical. As understood by those skilled in the art, the
benefits of immediate financing embodiments and gap filling loan
embodiments, especially in combination when the borrower is effectively
prequalified for the gap filling loan, include an increase in loan
closings and an increase in the availability of a blended rate for the
borrower. The blended rate may or may not exceed the desired rate or a
maximum rate of the P2P loan request, as understood by those skilled in
the art.

[0013] According to yet other embodiments of the present invention, a
financial institution can guarantee a P2P loan associated with a P2P
lending website. The P2P lending website receives the loan request. Then
the financial institution determines whether to authorize insurance
products associated with the P2P loan request; offers for purchase one or
more insurance products, including, for example, debt cancellation
insurance and credit life insurance; and issues insurance products
responsive to its purchase and the closing of the P2P loan. As understood
by those skilled in the art, the availability of insurance products, such
as, for example, debt cancellation insurance and credit life insurance,
can reduce lender risk, improve the comfort level of a lender with
respect to repayment, and provide assurance to a lender, resulting in a
greater willingness to enter into loans. Therefore, embodiments of the
present invention result in a significant increase in loan closings as
more individual consumers are willing to lend money with the financial
institution offering insurance. As an example, a lender is "on the fence"
on a particular loan request, but is willing to lend with the guarantee
of a bank or other financial institution. Then the lender can purchase a
guarantee from a financial institution for an agreed upon fee based on
the borrower's risk profile. If borrower defaults, the financial
institution repays lender's unpaid balance owed and steps into the
lender's repayment position.

[0014] According to another embodiment of the present invention, the
financial institution can be a federally-chartered bank subject to
federal banking laws and regulations and not subject to state banking
laws and regulations. Therefore, the federally-chartered financial
institution enjoys rate preemption; that is, state licensing
requirements, as well as regulations in many states that limit lending
interest rates, are preempted and do not apply to the federally-chartered
financial institution. As understood by those skilled in the art, a
federally-chartered financial institution can operate in every state with
a consistent implementation nationally rather than a state-by-state
approach and can charge any loan or interest rate for the gap filling
loans or immediate financing loans without regard to state law. For
example, if a borrower posts a loan request for $5,000 and the borrower
resides in a state with a 10% maximum interest rate limitation, the
financial institution can offer immediate financing or a gap filling loan
at an interest rate of 15%. In addition, if the borrower resides in a
state where the P2P lending website does not have a license needed to
operate, rather than reject the customer, however, the P2P lending
website can disclose that the financial institution is willing to fulfill
the entire loan request value at a rate of, for example, 17% immediately.

[0015] Embodiments of the present invention also include additional
features. For example, the financial institution can bundle the gap
filling loans, immediate financing loans, or both for sale on secondary
capital markets, as understood by those skilled in the arts. According to
embodiments of the present invention, the financial institution can
employ sophisticated underwriting models and preselected authorization
parameters to determine whether to authorize a gap filling loan, a
financial institutional loan for the entire selected loan value, and one
or more insurance products to guarantee the loan. In addition, the
financial institution can load the loan value to a prepaid card according
to embodiments of the present invention so that the loan request is
converted into a prepaid card having an associated value and being
capable of purchasing goods and so that the P2P lending marketplace is
not limited to individual consumers with traditional bank accounts,
checking accounts, and other such accounts as understood by those skilled
in the arts, but expanded to include those using prepaid cards who
otherwise may have difficulty in accessing the P2P lending marketplace.

[0016] Embodiments of the present invention provide other benefits to the
P2P lending website. An association with the financial institution, for
example, can legitimize the P2P lending website. The addition of gap
filling loans, according to the embodiments of the present invention,
allows the P2P lending website to preserve its social feel with the
financial institution serving simply as a backstop for both individual
consumer borrowers and lenders. Also, reporting the financial institution
performance, as understood by those skilled in the arts, can create a
"Beat the Stuffy, White Shirt Banker" promotional opportunity for the P2P
lending website.

[0017] For a financial institution, for example, embodiments of the
present invention provide additional benefits, including a low cost
customer acquisition channel and cross marketing opportunities for other
products and services. As understood by those skilled in the arts, the
financial institution can purchase receivables from the individual
consumer lenders, forming a secondary market and providing individual
consumer lenders the ability to access cash tied up in loans.

[0018] Additionally, the financial institution can share its sophisticated
underwriting models and preselected authorization parameters with
individual consumer lenders wanting to piggyback on the financial
institution's credit standards according to embodiments of the present
invention to thereby further legitimize the P2P lending website and the
underwriting and performance data reported by the P2P lending website, as
understood by those skilled in the art.

[0019] Embodiments of the present invention provide, for example, a system
to finance an individual consumer loan request associated with a P2P
lending website. The system can include a first computer defining a
borrower computer, which includes a program product, e.g., software,
stored in memory to provide information for a P2P loan request through an
electronic communications network, e.g., the Internet or World Wide Web,
to a second computer defining a P2P lending website computer. The P2P
lending website computer has an electronic forum for hosting a P2P loan
request and for loan offers by one or more individual consumer lenders.
The loan request information includes a preselected loan value. Each loan
offer associated with the electronic forum is responsive to the P2P loan
request and has a loan value that fulfills all or a portion of the P2P
the preselected loan value. The system further includes one or more third
computers defining a lender computer, which can include, for example, a
program product stored in memory to provide loan offer information
responsive to the P2P loan request to the P2P lending website computer
through the electronic communications network. The system also, for
example, can include a fourth computer defining a financial institution
computer, which receives loan information from the P2P lending website
computer through the electronic communications network. The financial
institution computer can include a program product, for example, as
discussed below.

[0020] Embodiments of the present invention include, for example, a
program product associated with a financial institution computer, stored
on a tangible computer memory media, operable on a computer, and used to
finance an individual consumer loan request. The computer program
product, for example, can include a set of instructions that, when
executed by the computer, cause the computer to perform various
operations. The operations include identifying a deficiency amount for
the P2P loan request associated with the P2P lending website. The
deficiency amount is the difference between the preselected loan value of
the P2P loan request and a value of an aggregate of any individual
consumer loan offers responsive to the P2P loan request, if the value of
the aggregate is less than the preselected loan value. The operations
also include the financial institution determining whether to authorize a
gap filling loan for the deficiency amount to an individual consumer
requesting the loan and authorizing the gap filling loan for the
deficiency amount at preselected loan terms from the financial
institution. The operations further include issuing the gap filling loan
to the individual consumer making the P2P loan request responsive to
approval of the preselected terms by the individual consumer.

[0021] In addition, embodiments of the present invention include other
program products, systems, and associated methods for satisfying a P2P
loan request, as will be understood by those skilled in the art.

BRIEF DESCRIPTION OF DRAWINGS

[0022] So that the manner in which the features and benefits of the
invention, as well as others which will become apparent, may be
understood in more detail, a more particular description of the invention
briefly summarized above may be had by reference to the embodiments
thereof which are illustrated in the appended drawings, which form a part
of this specification. It is also to be noted, however, that the drawings
illustrate only various embodiments of the invention and are therefore
not to be considered limiting of the invention's scope as it may include
other effective embodiments as well.

[0023] FIG. 1 is a schematic flow diagram of a method of financing a
deficiency amount for a P2P loan request according to an embodiment of
the present invention;

[0024] FIG. 2 is a schematic flow diagram of a method of satisfying a P2P
loan request according to an embodiment of the present invention;

[0025]FIG. 3 is a system to finance an individual consumer loan request
according to an embodiment of the present invention;

[0026] FIG. 4 is a partial schematic diagram of a computer program product
for financing a deficiency amount for a P2P loan request according to an
embodiment of the present invention;

[0027] FIG. 5 is a partial schematic diagram of a computer program product
of satisfying a P2P loan request according to another embodiment of the
present invention;

[0028] FIG. 6 is a flowchart of a process of issuing a gap filling loan
from a financial institution according to an embodiment of the present
invention;

[0029] FIG. 7 is a flowchart of a process of issuing a loan or insurance
product from a financial institution responsive to a P2P loan request
according to an embodiment of the present invention;

[0030] FIGS. 8A and 8B are respective front and rear views of a prepaid
card according to embodiments of the present invention; and

[0031] FIG. 9 is a schematic block diagram of a point-of-sale hardware
device according to an embodiment of the present invention.

DETAILED DESCRIPTION

[0032] The present invention will now be described more fully hereinafter
with reference to the accompanying drawings, which illustrate embodiments
of the invention. This invention may, however, be embodied in many
different forms and should not be construed as limited to the illustrated
embodiments set forth herein; rather, these embodiments are provided so
that this disclosure will be thorough and complete, and will fully convey
the scope of the invention to those skilled in the art. Like numbers
refer to like elements throughout.

[0033] Embodiments of the present invention provide computerized methods
of financing an individual consumer loan request associated with a P2P
lending website, and associated systems and program products. Embodiments
of the present invention provide for financing a deficiency amount for a
P2P loan request, quickly satisfying a P2P loan request with a loan from
a financial institution, and guaranteeing a P2P loan through insurance
products.

[0034] FIG. 1 illustrates an embodiment of the present invention which
provides a computerized method of financing a deficiency amount for a P2P
loan request. The method, for example, includes a P2P lending website
providing an electronic forum for a P2P loan request by an individual
consumer and for loan offers by one or more individual consumers (block
103). The loan request has a preselected loan value. The loan request can
include a purpose for the loan, such as, a home improvement, travel,
education expenses, and others as understood by those skilled in the art.
Each loan offer is responsive to the P2P loan request and has a loan
value that fulfills all or a portion of the preselected loan value. The
method also includes identifying a deficiency amount for the P2P loan
request associated with the P2P lending website (block 105). The
deficiency amount is the difference between the preselected loan value of
the P2P loan request and a value of an aggregate of any individual
consumer loan offers responsive to the P2P loan request, if the value of
the aggregate is less than the preselected loan value, for example. The
method further includes determining whether to authorize a gap filling
loan for the deficiency amount from a financial institution to the
individual consumer requesting the loan (block 107) and authorizing the
gap filling loan for the deficiency amount at preselected loan terms from
the financial institution (block 109). The method continues with issuing
the gap filling loan to the individual consumer making the P2P loan
request responsive to approval of the preselected terms by the individual
consumer (block 111). The method further includes the financial
institution creating a collection of a plurality of P2P loans to define a
bundle of P2P loans to sell, in which a bundle includes one or more gap
filling loans (block 113).

[0035] As understood by those skilled in the art, the financial
institution serves as stop-gap for loan requests that are not fully
funded but meet the financial institution's credit strategy, fulfilling
the uncommitted portion of the loan requests. Benefits include, for
example, a significant increase in loan closings as otherwise unsatisfied
loan requests gain a second opportunity, more options for a blended rate
for individual consumer borrowers, and additional pressure on individual
consumer lenders due to the financial institution involvement, as
understood by those skilled in the art. Moreover, the sale of loans, for
example, gap filling loans, in a collection, bundle, or pool can reduce
risk through diversification and can make, for example, otherwise minor
and uneconomical investments of sufficient worth for interest by
secondary capital markets, as understood by those skilled in the art.

[0036] As understood by those skilled in the art, the embodiments of the
present invention are a supplement and addition to a P2P lending
websites. Existing P2P lending websites include, for example: Zopa of San
Francisco, Calif. (www.us.zopa.com), Lending Club of Sunnyvale, Calif.
(www.lendingclub.com), and Prosper (www.prosper.com), as understood by
those skilled in the art.

[0037] FIG. 2 illustrates another embodiment of the present invention,
which, for example, provides a computer-implemented method of satisfying
a P2P loan request. The computer-implemented method includes a P2P
lending website providing an electronic forum for a P2P loan request by
an individual consumer and for loan offers by one or more individual
consumers (block 203). The loan request has a preselected loan value.
Each loan offer is responsive to the P2P loan request and has a loan
value that fulfills all or a portion of the preselected loan value. The
computer-implemented method also includes receiving the P2P loan request
(block 205). The loan request includes information about the individual
consumer making the P2P loan request, as understood by those skilled in
the art. The computer-implemented method further includes a financial
institution determining whether to authorize a financial institutional
loan for the preselected loan value to the individual consumer making the
P2P loan request based on the information in the P2P loan request (block
207). The computer-implemented method continues with the financial
institution offering the financial institutional loan for the preselected
loan value at loan terms determined by the financial institution based on
information in the P2P loan request (block 209) so that the individual
consumer requesting the loan can choose an immediate loan offer with
terms determined by the financial institution or choose to solicit
individual consumer loan offers with more favorable terms through the P2P
lending website. The computer-implemented method further includes issuing
the financial institutional loan responsive to approval by the individual
consumer requesting the loan of the terms from the financial institution
(block 211). In addition, the computer-implemented method includes the
financial institution determining whether to authorize one or more
insurance products to individual consumers associated with the P2P loan
request (block 213). The computer-implemented method continues with the
financial institution offering for purchase one or more insurance
products to the individual consumers associated with the P2P loan request
(block 215). The insurance products include one or more of the following:
debt cancellation insurance, and credit life insurance, as understood by
those skilled in the art. Debt cancellation insurance includes a loan
term or contractual arrangement modifying loan terms under which a bank
agrees to cancel all or part of a customer's obligation to repay an
extension of credit upon the occurrence of a specified event, as
understood by those skilled in the art. Credit life insurance is a type
of insurance, often bought by mortgagors, in which the amount of the
policy matches the loan balance at any given time; credit life insurance
is designed so that the loan will be paid off in full in the event of
death, as understood by those skilled in the art. The
computer-implemented method also includes issuing one or more insurance
products responsive to a purchase from individual consumers and
responsive to a closing of the loan (block 217).

[0038] As understood by those skilled in the arts, the immediate financing
option provided by the financial institution can guarantee that the loan
will be funded (assuming the borrower is willing to accept the terms of
the financial institution) and establishes a ceiling on the "zone of
possible agreement." Other benefits of immediate financing embodiments,
i.e., prior to a loan auction, and gap filling loan embodiments, i.e.,
after a loan auction, especially in combination when the borrower is
effectively prequalified for the gap filling loan, include an increase in
loan closings and an increase in the availability of a blended rate for
the borrower. A blended interest rate may or may not exceed the desired
rate or a maximum rate of the P2P loan request, as understood by those
skilled in the art. The availability of insurance products can reduce
lender risk, improve the comfort level of a lender with respect to
repayment, and provide assurance to a lender, resulting in a greater
willingness to enter into loans, as understood by those skilled in the
art.

[0039] According to other embodiment of the present invention, the
financial institution can be a federally-chartered bank subject to
federal banking laws and regulations and not subject to state banking
laws and regulations. Therefore, the federally-chartered financial
institution enjoys rate preemption; that is, state licensing
requirements, as well as regulations in many states that limit lending
interest rates, are preempted and do not apply to the federally-chartered
financial institution. As understood by those skilled in the art, a
federally-chartered financial institution can operate in every state with
a consistent implementation nationally rather than a state-by-state
approach and can charge any rate for the gap filling loans or immediate
financing loans without regard to state law.

[0040] Embodiments of the present invention include additional features.
As will be understood by those skilled in the art, the financial
institution, for example, can employ various levels of sophisticated
underwriting models and preselected authorization parameters to determine
whether to authorize a gap filling loan, a financial institutional loan
for the entire selected loan value, and one or more insurance products to
guarantee the loan, according to embodiments of the present invention, so
that loan request data is converted into loan offer data. Based on
information from the credit reporting agencies that individual lenders on
the P2P site would not otherwise have access to or the sophistication to
develop, such models, for example, may include a behavior score that
considers the borrower's credit score, length of employment, the presence
of recent derogatory credit information such as bankruptcy, ability to
provide direct deposits to the financial institution, or direct deposit
history.

[0041] In addition, the financial institution can load the loan value to a
prepaid card according to embodiments of the present invention to thereby
convert the loan request into a prepaid card having an associated value
and being capable of purchasing goods, so that the P2P lending
marketplace is not limited to individual consumers with traditional bank
accounts, checking accounts, and other such accounts as understood by
those skilled in the arts, but expanded to include those using prepaid
cards who otherwise may have difficulty in accessing the P2P lending
marketplace. Loading the loan value on a prepaid card includes, for
example, electronically interfacing with a prepaid card processor, such
as, but not limited to FDR, FSV, Galileo, Symmetrex, and TSYS, associated
with the prepaid card, as understood by those skilled in the art.

[0042] Embodiments of the present invention provide other benefits to the
P2P lending website. An association with the financial institution can
legitimize the P2P lending website, as understood by those skilled in the
arts. The addition of gap filling loans, according to the embodiments of
the present invention, allows the P2P lending website to preserve its
social feel with the financial institution serving simply as a backstop
for both individual consumer borrowers and lenders. Also, reporting the
financial institution performance, as understood by those skilled in the
art, for example, can create a "Beat the Stuffy, White Shirt Banker"
promotional opportunity for the P2P lending website.

[0043] FIGS. 3 and 4 illustrate embodiments of the present invention,
which advantageously provide a system 301 to finance an individual
consumer loan request associated with a P2P lending website 323. The
system 301 includes a first computer associated with an individual
consumer borrower defining a borrower computer 305. The borrower computer
305 can have, for example, memory 306a, one or more processors 306b,
input/output (I/O) devices 306c, and a display 306d. The borrower
computer 305 can also include a program product, e.g., software, stored
in memory 306a to provide information for a P2P loan request 325 through
an electronic communications network 307, e.g., the Internet or world
wide web, to a second computer associated with a P2P lending website 323
defining a P2P lending website computer 311. The P2P lending website
computer 311 can have, for example, memory 312a, one or more processors
312b, and input/output (I/O) devices 312c. The P2P lending website
computer 311 has an electronic forum 323 for hosting a P2P loan request
and for loan offers by one or more individual consumer lenders. The loan
request information includes a preselected loan value. Each loan offer
associated with the electronic forum 323 is responsive to the P2P loan
request and has a loan value that fulfills all or a portion of the P2P
the preselected loan value. The system 301 further includes one or more
third computers associated with individual consumer lenders defining a
lender computer 315. The lender computer 315 can have, for example,
memory 316a, one or more processors 316b, input/output (I/O) devices
316c, and a display 316d. The lender computer 315 includes a program
product stored in memory 316a to provide loan offer information 327
responsive to the P2P loan request to the P2P lending website computer
311 through the electronic communications network 307. That is, an
individual consumer borrower can use, for example, a browser or other
application program 325 miming on a computer 305 to access a P2P lending
website computer 311; the borrower computer 305 can provide loan request
information, as understood by those skilled in the art. Then individual
consumer lenders can use, for example, browsers or other application
programs 327 running on computers 315 to access the P2P lending website
computer 311; the lenders can make offers responsive to the P2P loan
request, as understood by those skilled in the art. And the computers all
communicate through the Internet, World Wide Web, or other such
electronic communications network 307. The system 301 also, for example,
can include a fourth computer associated with a financial institution
defining a financial institution computer 319. The financial institution
computer 319 can have, for example, memory 320a, one or more processors
320b, and input/output (I/O) devices 320c. The financial institution
computer 319 receives loan information from the P2P lending website
computer 311 through the electronic communications network 307.

[0044] As also illustrated in FIG. 4, the financial institution computer
319 includes a computer program product 321 associated with the financial
institution computer 319, stored on a tangible computer memory media 401,
operable on a computer, and used to finance an individual consumer loan
request. The computer program product 421, for example, includes a set of
instructions 403 that, when executed by the computer 419, cause the
computer 419 to perform various operations. The operations include
identifying a deficiency amount for the P2P loan request associated with
the P2P lending website (block 405). The deficiency amount is the
difference between the preselected loan value of the P2P loan request and
a value of an aggregate of any individual consumer loan offers responsive
to the. P2P loan request, if the value of the aggregate is less than the
preselected loan value. The operations also include determining whether
to authorize a gap filling loan for the deficiency amount from a
financial institution to an individual consumer requesting the loan
(block 407) and authorizing the gap filling loan for the deficiency
amount at preselected loan terms from the financial institution (block
409). The operations further include issuing the gap filling loan to the
individual consumer making the P2P loan request responsive to approval of
the preselected terms by the individual consumer (block 411).

[0045] FIG. 5 illustrates another embodiment of a program product of the
present invention, which includes a computer program product 321
associated with a financial institution computer 319, stored on a
tangible computer memory media 501, operable on a computer, and used to
finance an individual consumer loan request. The computer program product
321, for example, includes a set of instructions 503 that, when executed
by the computer 319, cause the computer 319 to perform various
operations. The operations include determining whether to authorize a
financial institutional loan for a preselected loan value from a
financial institution to an individual consumer requesting the loan based
on information in a P2P loan request (block 505). The operations also
include offering to the individual consumer requesting the loan the
financial institutional loan for the preselected loan value with loan
terms determined by the financial institution based on the information in
the P2P loan request (block 507) so that the individual consumer
requesting the loan can choose an immediate loan offer with terms
determined by the financial institution or choose to solicit individual
consumer loan offers with more favorable terms through the P2P lending
website. The operations further include issuing the financial
institutional loan for the preselected loan value to the individual
consumer making the P2P loan request responsive to approval by the
individual consumer of the terms from the financial institution (block
509). In addition, the operations include determining whether to
authorize one or more insurance products from the financial institution
to individual consumers associated with the P2P loan request (block 511).
The operations further include offering for purchase one or more
insurance products, such as, for example, debt cancellation insurance and
credit life insurance (block 513). The operations also include issuing
one or more insurance products responsive to one or more purchases by the
individual consumers associated with the P2P loan request and responsive
to a closing of the loan (block 515).

[0046] A person having ordinary skill in the art will recognize that
various types of memory are readable by a computer such as described
herein, e.g., underwriter computer, bank computer, prepaid card
processors, or other computers with embodiments of the present invention.
Examples of computer readable media include but are not limited to:
nonvolatile, hard-coded type media such as read only memories (ROMs),
CD-ROMs, and DVD-ROMs, or erasable, electrically programmable read only
memories (EEPROMs), recordable type media such as floppy disks, hard disk
drives, CD-R/RWs, DVD-RAMs, DVD-R/RWs, DVD+R/RWs, flash drives, memory
sticks, and other newer types of memories, and transmission type media
such as digital and analog communication links. For example, such media
can include operating instructions, as well as instructions related to
the system and the method steps described above and can operate on a
computer. It will be understood by those skilled in the art that such
media can be at other locations instead of or in addition to the
locations described to store program products, e.g., including software,
thereon.

[0047] FIG. 6 illustrates an embodiment of the present invention, which
includes a process of issuing a gap filling loan from a financial
institution, for example. The process includes identifying a deficiency
amount for a loan request associated with a P2P lending website (step
601). Next, the decision flow of the process involves determining whether
to authorize a gap filling loan for the deficiency amount (block 603). If
the determination is not to authorize, the process ends (block 611). If
the determination is to authorize, then the financial institution
authorizes the gap filling loan (block 605). Next, the decision flow of
the process involves asking if the borrower approves the terms from the
financial institution (block 607). If the borrower does not, then the
process ends (block 611). If the borrower does approve the terms, then
the financial institution issues the gap filling loan (block 609). And
the process ends (block 611).

[0048] FIG. 7 illustrates another embodiment of the present invention,
which includes a process of issuing a loan or insurance product from a
financial institution responsive to a P2P loan request, for example. The
process includes receiving information in person-person loan request
associated with a P2P lending website (step 701). Next, the decision flow
of the process involves determining whether to authorize an immediate
financing loan from the financial institution (block 703). If the
determination is to authorize, then the financial institution offers the
immediate financing loan with terms determined by the financial
institution (block 705). Next, the decision flow of the process involves
asking if the borrower approves the terms from the financial institution
(block 707). If the borrower approves the terms, then the financial
institution issues the loan (block 709) and the process ends (block 721).
If, however, the determination is not to authorize the loan or the
borrower does not approve terms, then the process continues with
determining whether to offer loan insurance products (block 711). If the
determination is not to offer the loan insurance products, the process
ends (block 721). If the determination is to offer the loan insurance
products, then the financial institution offers the loan insurance
products (block 713). Next, the decision flow of the process involves
asking if the insurance product is purchased (block 715). If the
insurance product purchase is declined, then the process ends (block
721). If the insurance product is purchased, then the decision flow of
the process involves asking if the loan closed (block 717). If the loan
does not close, then the process ends (block 721). If the loan does
close, then the financial institution issues the insurance product (block
719). And the process ends (block 721).

[0049] FIGS. 8A and 8B illustrate a prepaid card 800, according to an
embodiment of the present invention. FIGS. 9 illustrates a point-of-sale
hardware device 820, e.g., a card reader, according to an embodiment of
the present invention. As understood by those skilled in the art, the
prepaid card can have indicia 801, e.g., logos, slogans, source
identifiers, of a sponsoring bank and of a prepaid card processor; a
serial number 802, e.g., an account number; and expiration date 803. The
structures of various types of specific cards, e.g., magnetic stripe 804,
type of material, are well known to those skilled in the art and can be
used with embodiments of the present invention. Typically, a card 800 is
formed from plastic and has a magnetic stripe 804 affixed to the plastic
through an application of heat. Those skilled in the art will understand
that other embodiments besides a magnetic stripe can include radio
frequency identification devices (RFID), smart chips, bar codes, and
other similar devices. Embodiments of the present invention can include
forming cards or receiving cards already formed. A magnetic stripe card
800 can store information, or data, e.g., account information, by
modifying the magnetism of particles on the magnetic stripe 804 on the
card. The information can be read by swiping the card with a
point-of-sale hardware device 820. The point-of-sale hardware device 820
can include, for example, interface buttons 823 for use by the merchant
personnel or the consumer, a display 822 for providing feedback, and a
slot 821 for swiping the card to engage the magnetic stripe 804 on the
card with the reader as understood by those skilled in the art.
Typically, there are two tracks of information on a magnetic card used
for financial transactions, known as tracks 1 and 2. In addition, a third
track, known as track 3, can be available for magnetic stripe cards.
Tracks 1 and 3, if available, are typically recorded at 210 bits per
inch, while track 2 typically has a recording density of 75 bits per
inch. Track 2, as typically encoded, was developed by the American
Bankers Association (ABA) provides for 37 numeric data characters,
including up to 19 digits for a primary account number (including a Bank
Identification Number as understood by those skilled in the art), an
expiration date, a service code, and discretionary verification data,
such as, a Personal Identification Number, or PIN. The information on the
card can be used, for example, to facilitate a transaction. For example,
when the prepaid card 800 is swiped through a point-of-sale device 820,
the information on the magnetic stripe 804 is read and processed by the
reader allowing a value associated with the prepaid card to be used to
purchase goods and services. In addition, the point-of-sale hardware
device 820, through its display 822, can represent a visual depiction of
the financial institution loan value loaded onto the prepaid card 800.

[0050] Advantageously, embodiments of the present invention, for example,
can transform data associated with an individual consumer requesting a
loan into an offer for a financial institution loan then into data
representing a loan and accordingly into data associated with a value on
a prepaid card, resulting in the consumer being able to, for example,
perform a home improvement project, take a vacation, enroll in school, or
other such purpose provided in the loan request data. That is, the loan
request data can be transformed into a new garage or replacement windows
according to embodiments of the present invention.

[0051] Embodiments of the present invention provide additional benefits
for the financial institution, for example, including a low cost customer
acquisition channel and cross marketing opportunities for other products
and services. As understood by those skilled in the arts, the financial
institution can purchase receivables from the individual consumer
lenders, forming a secondary market and providing individual consumer
lenders the ability to access cash tied up in loans. Additionally, the
financial institution can share its sophisticated underwriting models and
preselected authorization parameters with individual consumer lenders
wanting to piggyback on the financial institution's credit standards
according to embodiments of the present invention, further legitimizing
the P2P lending website and the underwriting and performance data
reported by the P2P lending website, as understood by those skilled in
the arts.

[0052] This application claims priority to and the benefit of U.S.
Provisional Patent Application No. 61/033,069, titled "Person-to-Person
Lending Program Product, System, and Associated Methods", filed on Mar.
3, 2008, incorporated herein by reference in its entirety.

[0053] Many modifications and other embodiments of the invention will come
to the mind of one skilled in the art having the benefit of the teachings
presented in the foregoing descriptions and the associated drawings.
Therefore, it is to be understood that the invention is not to be limited
to the illustrated embodiments disclosed, and that modifications and
other embodiments are intended to be included within the scope of the
appended claims.